Avoid changing horses in midstream

Avoid changing horses in midstream

It’s rare that Accountants are spoken of as examples of great marketing. So please indulge us as we share with you a wonderful campaign run by the Institute of Chartered Accountants in England and Wales back in 1995.

So proud were the Institute of their campaign that they bought serious billboard space in London. On the billboard was written in huge writing:

“It’s easier to sleep with a Chartered Accountant.”

Talk about impact. The number of letters this campaign generated to the national press in England was amazing. It probably even turned up in comedians’ lines, news bulletins and so on.

And then, six months later they changed it.

What to? Well, we can’t tell you. Because we haven’t noticed any of their campaigns since — nor have there been reports of any letters appearing in the Times!

So, the question to ask is obvious. Why change it? Or more particularly, why change something that was working brilliantly?

They changed (like most other people) because they figured it was “time to change.”

In doing that, they fell into the trap into which many businesses fall — change for change’s sake. It’s wrong!

Many companies indiscriminately change campaigns in midstream. In the process of that change, they:

1. Don’t allow the cumulative effect of a winning concept to work for them.
2. Don’t allow the dynamics of testing to work for them.
3. Make a patchwork quilt of their company’s image and position.

The truth is that you get tired of your own campaign long before it’s done its work out there in the marketplace.

Don’t arbitrarily abandon it. Only replace an approach when you’ve verified and validated a more successful and profitable successor. Again, that requires measurement, management and testing. And, as you’d understand, as Accountants we’re well-placed to help you with implementing those measurement systems. Please reach out if you’d like to discuss how we might do that.

Combat the increase in audit activity

The government has proposed a 55% increase in audit funding over the next four years. A target of $3.7 billion is anticipated for the gross revenue that will be raised as a result. So what does this mean for you? We suspect an increase in audit activity in relation to individual, business and SMSF lodged returns. 

Our recommendations to combat the increase in audit activity

1. Be in the know
Gain a better understanding of your financial position and tax particulars by talking with your accountant. Your accountant can also conduct a risk assessment, and in doing so you could both discover a better way to structure your affairs. 

2. Seek expert advice
In the event that you are contacted by the ATO or other government revenue agencies, the best action for you to take is to advise them that you would firstly like to talk to your accountant. As your accountant, we have the experience in dealing with these matters and will be more likely to reduce the time and cost required to attend to the audit activity in question.

3. Consider Audit Shield
We proudly offer our Audit Shield service as a mechanism to protect you against unplanned professional fees that can arise as a result of audit activity. With the government’s focus on increasing gross revenue, taxpayers will be scrutinised – increasing your chances of an audit, enquiry, investigation or review. Even if no adjustments are required to your lodged returns, significant costs can still be incurred in order to satisfy the requests of the ATO or other government revenue agencies responsible for the instigation.

If you would like to hear our experiences with the increase in audit activity, or if you would like to learn more about how you can protect yourself with our Audit Shield service, please contact our team.